Tennessee FHA Mortgages
Most people know that the economy has been slow for more than a year. However, most people probably aren't aware that while the slowdown has had plenty of unfortunate consequences, there are also some hidden advantages as well. The housing market, for example, is in a great place for buyers right now. Housing prices are lower than they've been in recent years, and sellers are motivated! If you're considering buying that first home, you should also consider a Tennessee FHA loan.
Is an FHA Loan for You?
Tennessee FHA loans are geared towards buyers who may not otherwise qualify for a traditional bank loan with reasonable terms. The hallmarks of the program are that it requires less of a credit history and less money up front for a down payment (3.5% versus 20%) than most loan programs, and also provides several reasonable, ethical loan options (both fixed and adjustable rate) that will fit a number of lifestyles. You may qualify for the Tennessee FHA loan program if you have the following requirements:
- Two years of steady employment, preferably with same employer.
- For the last two years, your income should have been steady or increasing.
- Your credit report should indicate that of all your debt payments, you made less than two late payments in the last two years. Each late payment should be less than thirty days late.
- Bankruptcies must be at least two years old, and all the credit you've established since then should be favorable.
- Foreclosures must be at least three years old, and all the credit you've established since then should be favorable.
- Your new mortgage payment should be approximately 30% of your gross income.
Tennessee FHA Loan Limits
Most areas in Tennessee have a maximum loan value of $271,050 for a single family home, but Nashville, for example, has a limit of $432,500 due to a higher cost of living in the city. Your lender will be able to tell you the exact Tennessee FHA loan limit for your area and situation, particularly if you are buying a multi-family dwelling (the amount varies based on number of units in the dwelling).